The most usual purposes of taking loans are the purchase of home appliances, house renovation, new car purchase or covering something else. But there is one more reason why people borrow cash every year, mostly in spring and summer. It’s usually the upcoming vacations. No matter whether they have the intention to spend several weeks by the sea or in some more exotic place, the holidaymakers are often eager to apply for loans to provide comfortable rest for them and their families.
Sometimes it may seem to be not a good idea, as after wonderful rest some individuals may find themselves in a tough financial situation and have difficulties in paying off the money borrowed.
The studies have been conducted recently by Czech debt Collection Company KRUK, which proved the vacations to be not the best choice for getting a loan, as it’s not the item or some kind of equipment retaining value. The benefit of the vacation is quickly fleeting, though not everybody will agree with this.
Make Money Advance Advantageous
There are a lot of travel agencies which offer easy short term loans for vacations to their clients. In Czech, according to the same study, the most popular loans are taken for medium-priced destinations like Greece, Italy, Bulgaria, and Egypt. Such loans are popular among families, which go on holidays every year and do not want to miss the opportunity. Due to the fact that package holidays are not the vital necessity, the loans taken for them fall into their own category.
Still, for those who are able to calculate in advance and take all the risks into consideration, such money advances can turn out to be advantageous. In most cases the borrower has a 4 months period to pay off the debt without interest. So if properly calculated, it can even be covered after summer comes up to an end. Anyway, summer is only once a year and the chance to get a proper rest should be taken, though some people don’t think of the consequences and borrow beyond their means.
Average consumers, for instance, borrow on average 5/6 of the cost of a package vacation and 60% of them manage to cover their debt in the first four months. The rest of the borrowers pay off their obligations in term of one year. Those who are careful as to their family budget, don’t experience “rude awakening” from chasing debts later on.
Don’t Want to Borrow? Consider Domestic Rest!
Before the world economic crisis there were about 3% of customers who purchased vacations by means of borrowed money, today the number has decreased to just 1%. Lately, more and more families consider spending holidays at home but in various wellness hotels or camping grounds at popular destinations around the country or lesser–known ones. People begin to realize that domestic rest is much cheaper yet able to provide a valuable experience for holidaymakers with children or without them. It does not always have to Paris or Barcelona, or whatsoever. Or Personal Money Service can teach you how to travel on a budget.
You can always choose the vacation to your heart’s content, but mind that financial responsibility is on your part as well.